Finance & Legal minutes: 2007-01-28

Minutes:

Attending: elph, carl, adi

MONKEY: bookkeeper to let meals know their share of the startup balance
remaining

- GOCA loaned startup money to meals originally, and meals was paying it back
based on late fees -- could the bookkeeper please let meals know the balance,
and since meals has a healthy account balance it is possible meals could pay
it off

- exploring the feasibility of using reserve fund to pay down the capital on
the CH/common garages loan

2008: started with $79k should be $101k; we spent $7150 on radon mitigation,
$5577 on gutters, both in 2006, and $4200 on repaving the asphalt in 2007. The
shortfall is because we started collection late and the reserve study assumed
a balance that was not correct. We expect 2008 with $112k in the reserve fund
(after the anticipated $5411 in expenditures in 2008)

The reserve study assumes a threshold of $100k -- based on a sense of the
LTCRF committee about what to have in case of unanticipated emergencies (ie.
Sunward had $100k in unanticipated roof repair costs).

The bank loan will be $87k at renewal in 3/2009 -- if we pay the entire amount
off from the reserve fund, it will take approx 3.5 years to replenish the
reserve account to the level of the desired threshold of $100k

One concern is that buildings would like to accelerate the re-staining of the
buildings, and current estimates (quotes) are higher than expected.

Bank loan is currently charging 6%; currently we are making 5% on the reserve
fund. We can anticipate that interest rates will go down, so the loan could be
less expensive; however the reserve fund will make 5% for at least 4 more
years.

Based on this information, unless the interest on the bank loan is
substantially higher than 5% in 3/2009, there is no strong advantage to paying
down the capital on the bank loan

Next meeting Feb 11; Elph, Carl and any other interested parties will decide
when and where to meet. Please send any agenda items to finance at gocoho.org

End.

On Sun, Jan 27, 2008 at 02:45:08AM +0000, R.P. Aditya wrote:
> The next F and L meeting will be on Monday, January 28 at 7pm in Unit 24.
> The current agenda items are the following:
>
> - updated reserve fund "catchup" numbers
>
> - assigning a facilitator and scribe for the February F&L meetings
>
> If you have any additional items or updates, please send them to me.
>
> Below are the minutes from the last meeting.
>
> Thanks,
> Adi
>
> On Tue, Jan 15, 2008 at 01:54:12AM +0000, R.P. Aditya wrote:
> > attending: sarah, tracy, elph, adi, emily
> >
> > Balances through the end of 12/2007:
> >
> > GOCA checking: $50,700
> > reserve fund CD $52,000
> > reserve fund Money market $33,000
> >
> > - reserve fund update
> >
> > our reserve fund accumulation schedule expected $101,168 to be
> > collected by the end of 2007 - however we spent money from the fund on
> > radon mitigation and gutters, and did not collect the projected amount
> > in 2007 since the required increases per household per month were not
> > applied
> >
> > MONKEY: for Elph, to figure out the increase in the reserve fund that was not
> > applied in 2007, so that we can take that from any 2007 association fee credit
> >
> > - spending money from the reserve fund for CH items
> >
> > For CH, in 2008, the reserve fund is scheduled to provide:
> >
> > $3819 to replace the dining tables
> > $1591 to replace the entertainment system
> >
> > Some items that CH might want to upgrade/replace in advance of 2013
> > when they are scheduled to be replaced:
> >
> > $4562 for carpet
> > $1845 for exercise equipment
> >
> > CH committee wants to know if they can spend money from carpet replacement in
> > advance? So far we should have $2281 collected (half of the 2013 amount) so
> > there should be no problem spending that. The reserve fund first update will
> > happen in 2008, so the schedule can be updated.
> >
> > In general it is not recommended to borrow from reserve fund monies in
> > advance, though the community might decide to do it in some cases.
> >
> > - scrip -- GOCA cannot benefit from such programs which support a "public
> > benefit corporation" 501c3 as we are not
> >
> > - grants -- Bo likes the word "grants" (he grins), Elph is willing to
> > participate (not lead) in an investigation of what grants might be available
> > and useful to GO
> >
> > END
> >
> > On Sun, Jan 13, 2008 at 09:10:37PM +0000, R.P. Aditya wrote:
> > > F&L will have our first meeting of 2008, tomorrow, Monday, Jan 14 at 7pm in
> > > Unit 24. The agenda is currently open, and if no new and pressing items
> > > present themselves, we will review our last minutes and check items on our
> > > "current topics" list.
> > >
> > > For reference, the F&L committe wiki page is at:
> > >
> > > http://www.gocoho.org/~gocoho/wiki/index.php/FinanceAndLegalCommittee
> > >
> > > the current assignments for this work season are:
> > >
> > > * FandLConvener: Adi
> > > * Counted Member: Elph, Carl, Emily
> > > * GeneralBookkeeper: Kathy B.
> > > * CheckWriter: Tracy
> > > * CheckDepositing: Melisa
> > > * Steering Rep: Elph
> > > * ReserveFundAdmin: Elph
> > >
> > > and our list of current topics is at:
> > >
> > > http://www.gocoho.org/~gocoho/wiki/index.php/FandLCurrentTopics
> > >
> > > For further reference, the minutes from our last meeting are included below.
> > >
> > > If you have an agenda items, updates, etc., please send them to me before 7pm,
> > > Monday Jan 14.
> > >
> > > Thanks,
> > > Adi
> >
> > _______________________________________________
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> > Finance-minutes at gocoho.org
> > http://gocoho.org/mailman/listinfo/finance-minutes_gocoho.org
> >
> > _______________________________________________
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> > Talk at gocoho.org
> > http://gocoho.org/mailman/listinfo/talk_gocoho.org
>
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